There’s an excellent in the article in The Economist that goes into some good detail on the pros and cons of imposing higher tax rates on the wealthy. The Economist states “Higher rates on the rich are not, then, a free lunch.” The free lunch they conclude is stifled short term growth — “At low levels rate increases will lift revenue, but not without a cost in efficiency and short-term growth. If the budget is a government’s primary concern, then the evidence is that reforms which close loopholes and broaden the tax base are a more efficient way to bring in more money than higher taxes for the rich.”
My personal view is that our deficit pickle is principally a spending matter (with ample blame to go around), however, revenue is indeed a facet of our working through this. I’ve long held the belief that closing corporate loopholes is a far more sound approach to raise revenues than raising individual taxes on the wealthy — that by the way, I am not.